Accounting in Ukraine

Accounting System

Accounting Standards

The Law on Accounting and Financial Reporting, effective from 1 January 2000, introduced National Accounting Regulations (Standards) (NR(S)AU). The law states that these local standards should not contradict International Financial Reporting Standards (IFRS), but in practice there are gaps between the two.

Derived from the Soviet model, the Ukranian accounting system implemented a series of reforms, amongst which those of 1998, in order to come closer to international standards. The Ministers' Cabinet adopted a resolution, # 1706 in 1998, reforming the Ukranian accounting system: 32 Ukranian accounting standards were thus introduced, and were further completed by a new strategy on the application of international accounting standards in the Ukraine by the Ministers' Cabinet in 2007. Following the Finance Minister's decree no. 291, all legal Ukranian persons must have a Accounting Guidelines.

Difference Between National and International Standards (IAS/IFRS)

The law relating to accountability and finance, which came into force on January 1, 2000 introduced the
National Accounting Regulations (Standards) NR(S)AU, which states that local standards should not contradict international standards of the IFRS.

Accounting Practices

Tax Year

The fiscal year begins on 1 January and ends on 31 December of the same year.

Accounting Reports

The Ukrainian accounting rules are very complex in terms of taxes.
Accounting, in Ukraine, mixes tax system and financial accounting.
As taxes are excessive in the Ukraine, this makes accounting increasingly complicated.

The financial status is made up of the statement, the profit and loss account and the cash flow statement.

Investor considerations
In principle, local accounting standards should not contradict international accounting standards. In practice, there are gaps between the two and separate books may be required.
JSCs are subject to an annual audit requirement and must publish their annual financial statements. This is...